Sunday, 23 August 2026
UK power softer on prompt; Hormuz/Norway supply fears keep curve elevated
Prices rising sharply2027 wholesale: £84.48/MWh
Energy prices are significantly higher than normal right now, mainly because a standoff over a key shipping route in the Middle East is restricting gas supplies to Europe, pushing up the cost of the gas used to generate electricity in the UK. We expect prices to remain high and potentially rise further over the next two weeks unless a diplomatic deal is reached or the weather turns noticeably windier.
What's affecting prices
- •Middle East shipping route dispute cutting gas supplies to Europe
- •Norwegian gas pipeline disruptions reducing flows to Britain
- •Gas prices nearly double what they were a year ago
- •Warmer-than-normal UK weather reducing heating demand slightly — but not enough to offset supply fears
- •Electricity prices likely to rise further as winter approaches if no supply deal is reached
Wholesale pricing based on ICE forward settlements; non-commodity charges from NESO, LCCC, Ofgem and DNO publications. Indicative only — not financial advice.